Nike Scores Big Thanks to the Olympics
The Paris Olympics have significantly boosted traffic to Nike’s website, driving up demand for the company’s athletic apparel.
Data from analytics firm Similarweb shows that during the opening week of the Olympics (July 26th – August 1st), both Nike and Puma saw an increase in website visits compared to the previous week. In contrast, Adidas, Hoka, and On experienced a decline.
On July 31st, Nike.com recorded 2 million visits, following American gymnast Simone Biles’s victory, earning her 7th Olympic gold medal. Among the visitors to Nike’s website, 86,900 made purchases. Meanwhile, Adidas recorded 532,000 visits, with only 3,600 resulting in purchases.
“If Nike-sponsored athletes and teams use the brand’s products when they win, Nike’s image will be widely promoted. Nike will continue to benefit throughout the remainder of the Olympics,” said Daniel Reid, an analyst at Similarweb. Nike stated that they have spent a record amount on this Olympic event compared to previous ones, aiming to recover sales and compete with new emerging rivals. In June, CFO Matthew Friend announced that the company would invest $1 billion in consumer outreach activities in fiscal year 2025, including launching new products and increasing advertising through sports events.
This year, Nike is the official sponsor of the U.S. Olympic and Paralympic teams. The company has launched dozens of new products, ranging from the Jordan 4 Retro SE to a collection of 55 Olympic Electric Pack shoes. They have also introduced new designs for Alphafly 3 and Pegasus shoes.
On the resale website StockX, the Jordan 4 Retro SE Paris Olympics Wet Cement (retail price $225) recorded over 8,300 transactions by the end of July. This was the best-selling Olympic-related item on the site.
Nike is currently the world’s largest sportswear manufacturer. However, its business and market share have recently declined. Nike’s market share in the U.S. athletic apparel sector dropped to 34.97% in 2023, down from 35.37% the previous year and 35.4% in 2021, according to GlobalData.
Consumers are cutting back on spending for expensive athletic shoes and clothing. They are shifting towards basic items and increasing their spending on experiences such as concerts and travel. Nike is also facing intense competition from emerging brands like Hoka and On.
Nike’s shoe sales this year still lag behind On, Hoka, and Adidas. “Nike is still a brand facing challenges. But at the Olympics, Nike is truly winning,” said Drew Haines, Sales Director at StockX.